Tuesday, January 30, 2018

Insurance/Reinsurance: "California wildfire industry losses put at $13.2bn by Aon Benfield"

Speaking of wildfires.*
From Artemis:
The insurance and reinsurance industry loss estimates for the California wildfires of 2017 continue to rise, with the latest being an estimate of a $13.2 billion impact from the October wildfires in northern California and the December wildfires in the south of the state, from Aon Benfield.

Reinsurance broker Aon Benfield reveals its $13.2 billion California wildfire loss estimate in a breakdown of insured loss estimates from its new Weather, Climate & Catastrophe Insight: 2017 Annual Report from catastrophe risk unit Impact Forecasting.

The report highlights roughly $14 billion of global insured wildfire losses in 2017, but the vast majority are from the two major California fire outbreaks.

The October outbreak in northern California and the wine region is estimated to have caused an economic loss of $13 billion, with $11 billion of that estimated to be covered by insurance and reinsurance. This outbreak is the fourth largest economic and insured catastrophe loss event of 2017, according to Aon Benfield’s data.

The December outbreak in southern California is estimated to have cost the economy around $3.2 billion and re/insurers an estimated $2.2 billion, according to the brokers data in the report.
So that gives a $13.2 billion insurance and reinsurance industry loss just from the two main Californian wildfire outbreaks.

Should the estimate from RMS, of up to $2.5 billion of losses to the re/insurance industry from just the Thomas wildfire in southern California, prove accurate it means the tally for California wildfires could rise even higher....MUCH MORE
*"Elon Musk’s flamethrower faces possible sales ban in California"

Dec. 2017
Cat Bonds/Reinsurance: California Fires Could Force Payouts
Nov. 2017  
"California wildfire insured loss expected to hit $8bn: Aon"
Oct. 2017
"California wildfire costs rising with 8,400+ structures destroyed"
Oct. 2017
"California wildfires could cost re/insurers $4.6bn & rising: Moody’s"
It's going to be much more than that.
6000+ structures at even $100k average per gets you to $6 bil...